Coachella Valley Water District’s $51.3 million stormwater system revenue certificates of participation (COPs), series 2022A received the Fitch Ratings AAA-rating and the S&P Global Ratings AA+ long-term rating.
In addition, Fitch Ratings and S&P Global Ratings reaffirmed the District’s previous AAA and AA+ long-term rating for its $59.1 million Water Infrastructure Finance and Innovation Act (WIFIA) loan.
Fitch Ratings is a leading provider of credit ratings, commentary and research. S&P Global Ratings is a leading data, research, and credit ratings agency.
“These very strong ratings are a testament to CVWD’s financial health and stability and help to keep the financing costs for these key Stormwater projects’ expenses as low as possible,” said Geoffrey Kiehl, Director of Finance for CVWD.
The COPs will fund a portion of the construction of the North Indio Regional Flood Control Project, a 2.5-mile long series of concrete flood control channels that will connect existing channels to the Coachella Valley Stormwater Channel. When completed, the North Indio project will allow for construction and connection of other stormwater facilities that will provide regional flood protection to Thousand Palms and north Cathedral City.
After weighing financial strengths and weaknesses, Fitch provides a rating that indicates the risk involved with lending to that entity. An investment grade of AAA is reserved for the best quality companies, reliable and stable.
S&P Global Ratings assessment is based on payment of operating expenses leading to a viable ongoing system that will generate sufficient net revenues for debt service.
Coachella Valley Water District is a public agency governed by a five-member board of directors. The district provides domestic and irrigation water, agricultural drainage, wastewater treatment and reclamation services, regional storm water protection, groundwater management and water conservation. It serves approximately 110,000 residential and business customers across 1,000 square miles, located primarily in Riverside County, but also in portions of Imperial and San Diego counties.